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Incentives for solar water heating systems

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  • Taşdemiroǧlu, E.

Abstract

Life-cycle costing has been used in an economic analysis of three solar domestic hot water installations. These are in operation in Las Palmas (Canary Islands) and are backed by conventional installations consuming either fuel-oil (GG), butane (BB) or electricity (EE). The cumulative cost flows (CCF), including expenditures for purchase, recovery, maintenance, fuel and operating costs, are calculated over the useful life of the installations for expected annual fuel-increment rates. Twenty-seven comparisons are made between the solar (SAS) and conventional systems (CS). Total savings are found over the lifetime and the repayment periods are obtained as a function of discount rate. The SAS and CS are examined with respect to economic incentives such as subvention, tax deduction, loans and their combinations. Finally, the variations of the payback periods and rates of return on investment (IRR) are plotted against the fuel price, annual fuel increment rate and initial investment in the SAS for a wide range of economic parameters.

Suggested Citation

  • Taşdemiroǧlu, E., 1985. "Incentives for solar water heating systems," Energy, Elsevier, vol. 10(1), pages 1-15.
    • Handle: RePEc:eee:energy:v:10:y:1985:i:1:p:1-15
    DOI: 10.1016/0360-5442(85)90015-5
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